Why Bravura, Nine, Reece, & Zip shares are sinking today

It hasn't been a good day for these ASX shares…

| More on:
ASX shares skills shortage downgrade arrow causing the ground to crack symbolising a recession

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

In late trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a small gain. At the time of writing, the benchmark index is up 0.2% to 7,520.4 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are sinking:

Bravura Solutions Ltd (ASX: BVS)

The Bravura share price has crashed 17% to $3.13 following the release of its full year results. In FY 2021, the financial technology company reported an 11% decline in revenue to $243 million and a 14% reduction in net profit after tax to $34.6 million. The latter was at the low end of its guidance range. However, the main drag on its shares appears to be the shock departure of its CEO Tony Klim. He will leave the business next week after 13 years.

Nine Entertainment Co Holdings Ltd (ASX: NEC)

The Nine share price has fallen 9% to $2.70. This was despite the media company reporting a 76% increase in net profit after tax to $2278 million for FY 2021. As strong as this was, it was slightly lower than expectations. Also weighing on its shares was management's operating expense guidance for FY 2022.

Reece Ltd (ASX: REH)

The Reece share price has crashed 11% to $22.32. This follows the release of the plumbing parts company's full year results after the market close on Tuesday. While that result was in line with the market's expectations, management's uncertain outlook is weighing on its shares. Particularly given the lofty multiples they trade on.

Zip Co Ltd (ASX: Z1P)

The Zip share price is down 3% to $7.11. This morning Zip released its full year results and reported a 150% increase in revenue to $403.2 million. This was driven by a 178.5% jump in transaction volume to $5.8 billion, which was underpinned by a 247.5% increase in customer numbers to 7.3 million. The company also revealed that so far in FY 2022 total transaction value was up 58% in Australia and 240% in the United States. As positive as this was, its increasing costs appears to have spooked investors.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended Bravura Solutions Ltd and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Bravura Solutions Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Fallers

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why Betmakers, Cettire, Johns Lyng, and Vulcan shares are falling today

These shares are having a tough session on Thursday. But why?

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why Austal, Beach Energy, Perseus, and Platinum shares are falling today

These shares are having a tough time on hump day. But why?

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why Coronado Global, Genesis Minerals, Monash IVF, and Platinum shares are sinking today

These shares are starting the week in the red. But why?

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why Dateline, DroneShield, Ora Banda, and Pilbara Minerals shares are dropping today

These shares are ending the week in the red. But why?

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why Qantas, Resimac, Tyro, and Soul Patts shares are falling today

These shares are having a tough session today. But why?

Read more »

a man weraing a suit sits nervously at his laptop computer biting into his clenched hand with nerves, and perhaps fear.
Share Fallers

Why Betr, Evolution, NIB, and West African Resources shares are falling today

These shares are having a tough time on hump day. But why?

Read more »

A young woman holds an open book over her head with a round mouthed expression as if to say oops as she looks at her computer screen in a home office setting with a plant on the desk and shelves of books in the background.
Share Fallers

Why Elders, IDP Education, Life360, and Pilbara Minerals shares are falling today

Let's see why investors are selling these shares.

Read more »

a woman holds her hands to her temples as she sits in front of a computer screen with a concerned look on her face.
Share Fallers

The 5 worst performing ASX 200 shares in May unmasked

These five ASX 200 shares got smashed in May. But why?

Read more »